share_log

继峰股份(603997):24Q3TMD剥离轻装上阵 座椅产品空间广阔

Jifeng Co., Ltd. (603997): 24Q3TMD spin-off lightweight upper seat products with broad space

Guotou Securities ·  Nov 1, 2024 11:37

Incident: The company issued a three-quarter report announcement. The third quarter achieved revenue of 5.9 billion yuan, a year-on-year increase of 7.2%/3.15%, respectively, and net profit to mother of -0.585 billion yuan. The impact of the TMD divestment was significant.

NIO and Ideal contributed more, and the seat business grew rapidly

Revenue of 5.9 billion yuan was achieved in the third quarter, up 7.2%/3.15% year on month, respectively. Revenue is expected to continue to grow under overall pressure from overseas car markets. Major customers Ideal and NIO have strong sales. Ideal L6 sold 0.075 million vehicles in the third quarter, an increase of 92% over the previous quarter; NIO ES6/EC6 sold 0.031 million vehicles in the third quarter, up 10% from month to month. Looking ahead to the future market, seat revenue will grow rapidly as more models are mass-produced, driving the company's overall revenue to grow rapidly.

The TMD divestment caused impairment losses, and the company developed lightly and went to battle

Net profit attributable to mother was -0.585 billion yuan, and the impairment affected 0.27 billion yuan. 1) Among them, the asset depreciation was 0.252 billion yuan, mainly the impairment due to the divestment of TMD; the credit impairment was 0.02 billion yuan, mainly the impairment of high contracts.

2) Q3 management expenses were 0.726 billion yuan, an increase of 0.23 billion yuan over the previous month, which is expected to be mainly affected by layoffs in Europe. 3) Income tax for the third quarter was 0.091 billion yuan, an increase of 0.058 billion yuan over the previous quarter. It is expected to be mainly income tax changes due to divestment matters. Looking ahead to the future market, after the divestment of TMD, overseas will enter a profit period. TMD achieved revenue of 1.85 billion yuan and a net profit loss of 0.26 billion yuan in 2023. After the divestment of TMD, Grammer's overseas operations are expected to improve markedly.

The 100 billion seat circuit, the company is an independent replacement leader

Passenger car seats are progressing smoothly: the company acquired Grammer in 2019. Grammer is the leading commercial vehicle seat market. With Grammer's credit endorsement, it began to fully enter the seat circuit in 2020. By the end of July 2024, the company had received 19 orders from NIO, Ideal, Chery, Geely, FAW, BMW, etc., totaling nearly 90 billion yuan; the company's supporting OEMs were built and put into operation at Hefei and Changzhou bases in Ningbo, Changchun, Tianjin, Beijing, Fuzhou, and Yiwu. Wuhu and other bases completed the layout according to the plan, and the seats were localized Ongoing payouts. Overseas assets reverse losses: Grammer's overseas losses are mainly due to poor operations in North America. The main cause of losses in North America is TMD losses. As TMD divests overseas Grammer will enter a stable profit state, and the three major business sectors of Grammer, Seats, and Traditional Businesses will all contribute to profits in the future.

Investment advice:

The company's rapid mass production of passenger car seats in the past two years. The profit in 2024 is mainly due to the divestment of TMD and the fact that the seats have just entered mass production. We expect the company's net profit to be -0.5, 0.95, and 1.19 billion yuan respectively, corresponding to the current market value. PE in 2025 and 2026 will be 17.7 and 14 times, maintaining a “buy-A” rating. Considering the company's production capacity, revenue, and profit of the passenger car seat business are all in a stage of rapid growth, giving the company a target of 20 times PE in 2025 for 6 months Price 15 yuan/share.

Risk warning:

Passenger car sales fall short of expectations, customer expansion falls short of expected risks, industry competition increases risks, overseas business integration falls short of expectations, etc.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
Comment Comment · Views 267

Recommended

Write a comment

Statement

This page is machine-translated. Futubull tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation.